Question

What is a store brand and why do many of them imitate national brand packaging? Consider the effects social, marketing, situational, and psychological influences on consumer decision making. Is it ethical for a store brand to imitate the packaging of a national brand?

Answer 1

A store brand is a retailer's own product that often imitates national brand packaging to leverage customer recognition and trust. The imitation can influence consumer decisions through psychological, social, and situational factors and raises ethical concerns. Consumer behavior in purchasing store or national brands can vary according to the perceived value of the savings involved.

Step-by-step explanation:

A store brand, sometimes known as a generic or private label brand, is a product that is manufactured or acquired by a particular retailer for sale in their specific retail outlets. Store brands typically imitate national brand packaging for several reasons. By doing so, they leverage customer recognition and trust established by national brands, feeding on the psychological influence that familiarity has on consumer decision-making. This imitation may encourage consumers who are looking for a cost-effective alternative to choose the store brand due to its resemblance to a product they are already loyal to.

From a marketing perspective, similar packaging can impact consumers on a cognitive level, where they may associate the package with a certain level of quality. Situational influences also play a role; for example, a customer in a rush might grab a store brand item mistaking it for the national brand. Social influences, such as peer pressure and social norms, can persuade consumers to opt for one brand over another, and packaging similarity can exploit these influences to the store brand's benefit.

The ethical consideration is a matter of debate. While store brands may not be infringing on trademarks or engaging in outright deception, the imitation of packaging treads a fine line. Ethically, it could be seen as misleading if the intention is to make consumers believe they are purchasing a national brand when they are not. Regulation usually requires clear labeling of the actual manufacturer or seller to prevent consumer confusion.

In the context of behavioral economics, consumers might perceive the value of saving on a cheaper store brand differently depending on the context of the purchase, reflecting the psychological underpinnings of their decision-making process, as outlined in the example of the differing consumer responses to saving $10 on a low-cost item versus a high-cost item.

Answer 2

Consider the following text.

Step-by-step explanation:

Store brands are products which have the trademark or label of the store which sells them, especially a supermarket chain.Private label products are those manufactured by one company for sale under another company's brand. Private-label goods are available in a wide range of industries from food to cosmetics.

They imitate national brand packaging to increase the sales of their products so that customer gets influence from national brand and purchase their products. This also increases their chances of getting low cost marketing and promotion from such national brands. There are some factors which helps them to initiate consumer decision making.

Consumer's are usually grouped in social classes according to income, wealth, education, or type of occupation.A major influence on one’s purchasing habits and consumer behavior is the social class in which one finds him or herself. Social class is considered an external influence on consumer behavior because it is not a function of feelings or knowledge. Social class is often hard to define; in fact, many people dispute the existence of social classes in the United States. Usually, however, people are grouped in social classes according to income, wealth, education, or type of occupation.Social class can have a profound effect on consumer spending habits. Perhaps the most obvious effect is the level of disposable income of each social class. Generally, the rich have the ability to purchase more consumer goods than those with less income, and those goods are of higher quality.

If these store brand do extra marketing then that marketing factor influence the decision of the consumers because extra marketing by Store brands increases the chance of purchase like promotion discounts.

Pyschological influence includes the Familiy, reference groups etc. If our family purchases the products from such store brand then we also make purchase from such stores.

No, it is unethical because Competitors may attempt to capitalize on the "look" or "feel" of well-known brands in order to increase sales of similar products (Fenby, 1983; Carratu, 1987). The firm that owns the original brand has invested time, effort, and money in establishing a brand identity. Imitators then use the original brand's identity for their own benefit. An imitation strategy therefore reduces the costs involved in launching a brand and creating demand for it (Ward, et al., 1986).The exploitation of the other's brand for the benefit of their products is illegal and unethical.